Target: ₹375

CMP: ₹320.65

NLC India plans to double its total mining capacity from 50.1 million tonnes per annum (mtpa) as of FY25 to 104.4 mtpa by FY30 with a capex of ₹14,199 crore. Lignite mining capacity is expected to increase from 30.1 mtpa to 41.4 mtpa, while coal mining capacity is set to rise from 20 mtpa currently to 62 mtpa, along with establishment of a 1 mtpa critical minerals mining capacity.

With equal focus on the energy businesses, the company plans to nearly double their thermal power capacity to 10 GW by FY30 (capex of ₹49,981 crore), while renewable energy capacity is planned to increase afrom 1.6 GW currently to 10 GW by FY30 (capex of ₹41,599 crore). Additionally, NLC India has earmarked ₹11,101 crore in capex aimed at diversification projects

NLC India’s renewable portfolio is projected to scale to around 2 GW by FY26-end, followed by a rapid expansion to 8 GW by FY28 and 10 GW by FY30. The company has formed multiple State-level joint ventures to facilitate large-scale renewable development, while approximately 3 GW of capacity is already under construction.

The Pachwara South Coal Block (9 mtpa capacity) commenced mining operations during December 2025. At peak production, the block is expected to meet Ghatampur’s annual coal requirement of about 6 mtpa. For now, production from the Pachwara block is expected to scale towards about 2 mtpa by FY27.

The stock trades at FY26E/27E Bloomberg consensus EV/EBITDA multiple of 13.2x/9.3x respectively.

Published on May 4, 2026